OREANDA-NEWS. December 20, 2007. The Bank Electronika has become the first Russian issuer to place bonds in the market after stagnation that had lasted since August 2007.

Placement occurred on December 12, 2007, on the MICEX. The nominal value of the borrowing was 500 million rubles. During bidding, applicants filed requests totaling 560 million rubles, with proposals ranging from 12.5 percent to 13.4 percent annually. After considering bids, the issuer established the interest rate on the first coupon at 13 percent annually.

Bank Electronika was organizer for the bonds and VTB 24 was co-organizer. The entire volume of the bonds was placed during the auction.
The bonds have a three-year term to maturity. There will be an offering after one year. Coupon interest will be paid quarterly. The interest rate on the second through fourth coupons equals that of the first; the issuer will establish the rate on the fifth through twelfth coupons.

Bank Electronika will use the funds raised through the bond issue to finance its new strategy, which incorporates introducing business models and accompanying technology, establishing the best network of banking distribution in Russia, and rebranding for the Bank.